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Banco do Brasil sees $1.85 million more tenders of 9% junior notes
By Wendy Van Sickle
Columbus, Ohio, Nov. 3 – Banco do Brasil SA, acting through its Grand Cayman branch, took in tenders of $1.85 million principal amount of notes after the early deadline but before the final expiry of its offer to purchase up to $1 billion purchase price of its $2.12 billion outstanding 9% perpetual non-cumulative junior subordinated notes (Cusips: 05958AAL2, P3772WAF9), according to a news release.
The offer expired at 5 p.m. ET on Nov. 2. Final settlement is set to take place on Nov. 6 for a total cash payment on that date of $1,819,937.50, excluding interest.
As of the early tender deadline of 5 p.m. ET on Oct. 18, the bank had received valid tenders from the registered holders of $746,812,000 in aggregate principal amount of notes, as previously reported. The bank will accept all the tendered notes for purchase.
Early settlement took place on Oct. 20.
The total cash payment to purchase the accepted notes on the early settlement date was $757,080,665, excluding accrued interest.
As previously reported, the bank offered a total consideration of $1,013.75 per $1,000 note, inclusive of a $30 early tender premium that would only be paid to noteholders who tendered by the early deadline. Otherwise, noteholders will receive $983.75 per note.
Following final settlement, $1,371,338,000, or 64.69% of the original principal amount of the notes will be outstanding.
The purpose of the tender offer was to increase efficiency of the bank’s capital structure and reduce its interest expense.
The dealer managers for the tender offer are UBS Securities LLC (212 713-4715), Citigroup Global Markets Inc. (800 558-3745, 212 723-6106) and J.P. Morgan Securities LLC (866 846-2874, 212 834-7279).
D.F. King & Co., Inc. is the information and tender agent for the offer (800 628-8528, 212 269-5550, bdory@dfking.com).
The government-owned bank is based in Brasilia, Brazil.
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